PMFME Scheme Envisages Financial Support for Working Capital and Enable Self Help Groups Engaged in Food Processing Activities

Over 1 lakh SHG members have been identified and the seed capital amount of Rs. 203 Cr. has been released so far

SMEStreet Edit Desk
New Update
Food processing Ministry

The centrally sponsored Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme was launched on 29th June, 2020 by the Ministry of Food Processing Industries, Government of India under the Aatmanirbhar Bharat Abhiyan. The scheme has completed two years and a journey that started with the zest to empower the unorganized Micro Enterprises continues to fulfill the aim of formalising the food processing sector and celebrating their tremendous support towards the economy, has borne good results for the sector.

Envisioning enhancement of the existing individual micro-enterprises in the unorganized segment of the food processing industry and formalization of the sector, the PMFME Scheme is currently being implemented in 35 States and Union Territories. Under the scheme, the submission process for the applicants to apply for the credit-linked subsidy is done through the online portal ( Nearly 50,000 applicants have registered on the portal and more than 25,000 applications have been successfully submitted so far.

The digital GIS One District One Product (ODOP) map of India has been developed to provide details of ODOPs of all the States and UTs. The digital map also has indicators for Tribal, SC, ST, aspirational districts and Incubation Centers approved under the PMFME Scheme. It will enable stakeholders to make concerted efforts for its value chain development.

The Ministry of Food Processing Industries signed Joint Letters with Ministry of Rural Development (MoRD), Ministry of Tribal Affairs (MoTA) and Ministry of Housing and Urban Affairs (MoHUA) and MoUs with Indian Council of Agriculture Research (ICAR), National Cooperative Development Corporation (NCDC), Tribal Co-operative Marketing Development Federation of India (TRIFED), National Agricultural Cooperative Marketing Federation of India  (NAFED), National Scheduled Castes Finance and Development Corporation (NSFDC), National Scheduled Tribes Finance and Development Corporation (NSTFDC), Food Safety and Standards Authority of India (FSSAI) and Department of Animal Husbandry and Dairying (DAHD). An agreement has been signed with the Union Bank of India as the Nodal Bank for the PMFME Scheme and MoUs have been signed with 15 banks as official lending partners for the scheme.

Under the Capacity Building component of the scheme, the National Institute of Food Technology Entrepreneurship and Management, Kundli (NIFTEM-K) and the National Institute of Food Technology Entrepreneurship and Management, Thanjavur (NIFTEM-T) have been performing a key role in providing training and research support to food processing enterprises/groups/clusters in partnership with the State Level Technical Institutions and private training partners. Training of beneficiaries is being conducted on food product processing including Food Safety & Hygiene and Entrepreneurship Development Programme (EDP).

75 Incubation Centers have been approved under the scheme. The Ministry in collaboration with the National Institute of Food Technology Entrepreneurship and Management, Thanjavur (NIFTEM-T) has also developed an online portal for submission of Incubation Center proposals and a digital map for the facilitation of details of Incubation Centers across the country.


The PMFME Scheme also envisages financial support of Rs. 40,000 for working capital and purchase of small tools for each member of the Self Help Group (SHG) engaged in food processing activities. Over 1 lakh SHG members have been identified and the seed capital amount of Rs. 203 Cr. has been released so far.

Under the scheme, MoUs have been signed with NAFED and TRIFED to take up the marketing and branding activities for supporting and handholding the beneficiaries along the entire value chain. Under the component 10 ODOP Brands in association with NAFED have been launched. The scheme also envisages marketing support to State-level brands. As of now, 2 State-level brands have been successfully launched, including the brand “AASNAA” from the State of Punjab and the brand “BHIMTHADI” from the State of Maharashtra and many others in the pipeline.


To commemorate 75 years of India’s Independence, under the Azadi Ka Amrit Mahotsav initiative, the Ministry is conducting 75 Unique One District One Product (ODOP) webinars/offline workshops across the country in collaboration with States/UTs and NIFTEM. “Kahaani Sukshma Udyamon Ki” a series of success stories is also being published under this initiative wherein the inspiring stories feature the journey of the Micro Enterprises and Self Help Groups in the food processing sector, create awareness about the opportunities in the sector and encourage the existing and aspiring entrepreneurs to take the opportunity of availing the PMFME Scheme benefits to upscale their food processing business.

A monthly e-newsletter is also published featuring success stories, stories of innovation, One District One Product based stories, and research-based articles related to food processing. The E-Newsletter also features interviews with academics and industry professionals from the food processing sector, innovations and trends in the sector that can help Micro Enterprises, Self Help Groups, FPOs and Co-operatives to grow and become Aatmanirbhar.

Food Processing Ministry SHGs PMFME Scheme Self Help Groups